- The crypto market saw a slight dip after the South Korean President announced martial law, causing massive FUD among crypto investors.
- The Korea Premium Index dropped to -14.67, with Bitcoin briefly trading near $65K in Korean exchanges.
- After the news, investors transferred over $163 million in USDT to the Korean exchange Upbit, suggesting they may be planning to buy the dip.
Bitcoin (BTC) and the cryptocurrency market experienced minor declines on Tuesday, primarily due to political issues in South Korea, which introduced fear, uncertainty and doubt (FUD) among investors. This contributed to a brief 30% price drop across several crypto assets in Korean exchanges.
South Korean FUD weighs on crypto market
South Korea's President Yoon Suk-yeol declared emergency martial law, citing threats from North Korea and alleging that the opposition party was undermining the government.
Martial law entails military oversight of civilian governance, typically enacted during significant national threats, and could impact democracy and public safety in a country.
The announcement stirred negative sentiment in the crypto market, causing a dip in prices on major Korean exchanges like Upbit and Bithumb. Bitcoin dipped briefly by 30% on the exchange from $95K to around $61K, with altcoins like Ethereum and Solana dropping to $2K and $146, respectively.
The massive FUD led to temporary delays and restrictions on certain actions in the exchanges.
For instance, Bithumb users began experiencing delays in accessing the site and mobile app, while Upbit users were notified of a service delay on the mobile app.
The Korean Premium Index — a tool used to indicate the price differences between crypto on Korean exchanges and those on global markets — also dropped to a low of -14.67, according to CryptoQuant data. This premium decline meant that crypto prices on Korean exchanges traded 14% lower than the global market.
The Korea Premium Index has dropped to a low of -14.67. #Bitcoin is trading at a steep discount in South Korea vs. global markets. pic.twitter.com/3LJTQm2fQH
— CryptoQuant.com (@cryptoquant_com) December 3, 2024
However, on-chain data suggests investors may have capitalized on the dip following huge USDT inflows into Korean exchanges. Data from Lookonchain indicates that whales deposited $163 million in USDT to Upbit a few hours after the price dipped.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple whales prevent XRP decline after soaking $4 billion in sell pressure from realized profits
Ripple's XRP is down 5% on Tuesday after news of South Korea declaring martial law sparked a surge in selling activity and significant profit-taking among investors. However, whales have stepped up buying pressure as the token looks to stage a recovery.
Paul Atkins shows reluctance to replace SEC Chair Gary Gensler
Donald Trump's transition team is yet to find a candidate to replace Gary Gensler as SEC Chair in January. Paul Atkins, the favorite to replace Gensler, has reportedly shown reluctance toward the position. Other top choices for SEC Chair include Teresa Goody Guillén, Brian Brooks and Robert Stebbins.
Crypto Today: BTC holds $95K, Cardano sets $700M record, Tron and Avalanche advance.
Bitcoin price consolidated around the $95,000 mark on Tuesday, as traders continue to rotate profits towards the altcoin markets. Positive sentiment surrounding potential altcoin ETF approvals in 2025 has sparked a major accumulation wave across the altcoin markets.
Dogecoin Price Forecast: Traders move $380M as DOGE mirrors Bitcoin’s pullback
Dogecoin price continues to consolidate below the $0.40 level on Tuesday, down 16% within the daily timeframe. After multiple failed attempts at breaching $0.50 over the past week, speculative traders have moved to scale down their DOGE positions.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.